In fiscal year 2020, SMA Solar Technology AG (SMA/FWB: S92) sold inverters with a cumulative output of around 14.4 GW. Inverter output sold was thus approximately 26% above the previous year’s level (2019: 11.4 GW). The SMA group’s sales increased by around 12% to €1,026.6 million (2019: €915.1 million). This growth is attributable in particular to the very good business performance in the Large Scale & Project Solutions and Home Solutions segments. EBITDA doubled to €71.5 million (EBITDA margin: 7.0%; 2019: €34.2 million, 3.7%).
Net income came to €28.1 million (2019: –€8.6 million). Earnings per share thus increased to €0.81 (2019: –€0.25). Net cash decreased to €226.0 million (2019: €303.0 million). The decline is in particular due to the fact that the comparative figure at the end of 2019 included increased customer prepayments on account of a major order that was processed in the first quarter of 2020. By the end of 2020, customer prepayments were back to normal levels. The equity ratio increased to 41.8% at the end of the reporting year (2019: 37.6%). In addition, SMA has a credit line of €100 million from domestic banks. Based on the positive business development last year and the growth forecast for 2021, the Managing Board and Supervisory Board will recommend that the Annual General Meeting on June 1, 2021, set a dividend of €0.30 per share for the 2020 fiscal year. This corresponds to a dividend payout ratio of 37% of net income.
Did you know? 610 cities in the world have a 100% renewable energy targets
“SMA successfully overcame the considerable challenges related to the coronavirus crisis in 2020 and achieved the growth objectives for sales and earnings that we set before the pandemic broke out,” declared SMA Chief Executive Officer Jürgen Reinert. “In the segment for residential PV applications, sales significantly increased mainly in Europe, the Middle East and Africa, while in the utility-scale PV power plant business, we gained market share particularly in the U.S. and further consolidated our leading position in Australia. There, we have an overall market share of around 65% of the utility-scale PV power plant capacity that is already in operation or has been approved. I am also particularly pleased to see that we reached an important milestone as part of our sustainability strategy in 2020. The SMA headquarters is now supplied with electricity exclusively from PV and wind turbine systems in the immediate vicinity. Our heating supply here is now also completely CO2 neutral. It is our goal to make SMA fully CO2 neutral around the world starting 2025 at the latest.”
See also: Energy transition made in Germany
For the first quarter of 2021, the SMA Managing Board is anticipating sales of €235 million to €245 million (Q1 2020: €287.9 million) and earnings before interest, taxes, depreciation and amortization (EBITDA) of €14 million to €17 million (Q1 2020: €12.3 million). The SMA Managing Board is confirming its sales and earnings guidance for the 2021 fiscal year as published on February 5, 2021, which forecasts an increase in sales to between €1,075 million and €1,175 million and EBITDA of between €75 million and €95 million. “Due to the ongoing coronavirus crisis worldwide and increasing prices for raw materials and PV modules, we have recorded a relatively subdued start to the year,” said Reinert. “At the same time, incoming orders increased in March. Our current product order backlog plus sales already cover around 50% of the annual guidance. We are assuming that SMA can strengthen its position in key markets over the course of the year and benefit from the expected growth of the PV markets in Europe and America as well as that of the global storage market. The continuous improvement of our product portfolio and the implementation of cost reduction measures will have a positive effect on profitability in 2021. We will closely monitor the ongoing developments in relation to the coronavirus and respond quickly and flexibly at all times. We believe that SMA will remain well equipped to respond appropriately to all developments and to achieve the forecast sales and earnings growth during the current fiscal year.” (mfo)
